• Offset Accounts Simplified by RAMS

     

     

    Offset accounts are transaction accounts linked to your home loans which can help to reduce the amount of interest that you pay on your home loan

    Transcript:

    Greater Together is showing you how you can pay less interest on your home loan using an offset account.

    When you're applying for a home loan, some lenders will give you the option of having an offset account. 

    This is a transaction account you can link to your home loan that may be able to help reduce the interest you pay on your home loan.  The balance of the offset transaction account is effectively offset daily against your outstanding home loan balance.

    This means that the amount of interest charged is based on the net amount - the amount you've borrowed on your home loan, minus the amount sitting in your offset transaction account.

    No interest is paid to you on the funds in your deposit account when you have an offset facility as you're using your funds to reduce the interest on your home loan. 

    An offset account allows you to make the most of your income and other funds to reduce the amount of interest payable on your home loan, while keeping instant access to that money, should you need it.

    However it does require a bit more self-discipline to stay focused on paying down your home loan.

    Showing you how you could pay off your home loan faster.  

    Another reason we're greater together.

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